Archive | (EN) Statistic

It is becoming difficult to trade on fundamentals at the moment. The markets are dominated by sentiment which in itself is being driven by political noise. Firstly, the US Treasury market back up in yields has not been driven by a rise in inflation expectations as would have been expected. In fact forward inflation expectations […]

Friday's announcement that on January 30th, 278 European Banks have chosen to repay €137.2bln in funds that they borrowed from the ECB in the first of the LTROs, spooked the European interest rate markets. Why I am not so sure. There are little risk free assets you can buy above the rate, 0.75%, at which […]

The equity markets "Christmas" rally has been fuelled by the expectation of a deal to avert the US fiscal cliff and the imminent release of the next tranche of financial loans to Greece. Both of which to me seem little to cheer about. There should be a deal between the Republicans and the Democrats to […]

There are continuous rumours and speculation that a Spanish bailout will be announced in the coming weeks. However there are a number of problems in this happening. Firstly the market is missing a big problem with this- there are no funds available for a bailout from the ESM. The ESM currently has €32bln in capital. […]

Looking through the haze of the headlines there hasn't really been much to change in the last month. US Treasury yields are currently in a diminishing trading range with the last week seeing some yield curve flattening as the longer end of the curve saw declines in yields after the relatively strong demand seen in […]

And the risk markets are always hoping for Central Banks to intervene and to bail them out. This continues to look like a pyramid scheme. The latest optimism comes today from a Chinese press report suggesting that the Chinese will cut the Reserve Requirement Ratio in the coming weeks, ahead of most analysts expectations. It […]